Great Depression

Question 1

Define bankruptcy

Answer 1

Financial failure caused by an inability to pay one’s debts

Question 2

Define deficit spending

Answer 2

Spending more money that is received and creating debt as a result.

Question 3

Define payroll tax

Answer 3

Are taxes imposed on employer or employees.

Question 4

Define overproduction

Answer 4

Is the accumulation of unstable inventories in the hands of a business.

Question 5

Define pension.

Answer 5

A sun paid regularly to a person, usually after retirement

Question 6

Define collateral

Answer 6

Something promised as security for the repayment of a loan.

Question 7

Define mortgage

Answer 7

Loan in which a house in used as collateral.

Question 8

What is the difference between a recession and a depression?

Answer 8

Both are times when a country’s economy is doing poorly but a depression is worse.

Question 9

What does “Laissez Faire” mean when referring to the government and economics?

Answer 9

Laissez Faire means the government does not intervene in the economy.

Question 10

What was “Black Tuesday?” What date did it occur on?

Answer 10

The day the stock market crashed.

Question 11

The day after Roosevelt was inaugurated, what action did he take to resolve the bank crisis?

Answer 11

The day after Roosevelt was inaugurated he closed the banks for 4 days. He then made it a “Bank Holiday”.

Question 12

What was the Reconstruction Finance Corporation? Which President is responsible for starting the RFC?

Answer 12

The RFC funded “critical businesses” and provided direct unemployment relief through the creation of public works projects. Hoover is responsible for the program.

Question 13

What were “Hoovervilles?”

Answer 13

Hoovervilles were places the homeless people go.

Question 14

What were the causes of the Great Depression?

Answer 14

The causes of the Great Depression were overproduction, Stock market crash, and excessive expansion of credit.

Question 15

What were the effects of the Great Depression?

Answer 15

The effects of the Great Depression were Poverty, People lost money, and Bankruptcy.

Question 16

What was Hoover’s approach to ending the Great Depression?

Answer 16

Hoover’s approach to the ending of the Great Depression was that he formed the RFC to provide money to small governments.

Question 17

What was Roosevelt’s approach to ending the Great Depression?

Answer 17

Government creation of programs to assist the jobless and reforming the American economy.

Question 18

What were the goals of the New Deal?

Answer 18

The goals where reemploy people, reform the stock market, improve work conditions, and end the bank crisis.

Question 19

What was the Bonus Army? How did Hoover handle the Bonus Army? What was the result of Hoover’s actions?

Answer 19

A bonus for WW1 veterans. He refused to give it to them so they protested and he gassed them. He became very unpopular.

Question 20

What was the Court Packing Plan? Why did Roosevelt try this?

Answer 20

Roosevelt’s attempt to appoint 6 additional supreme court justices. Roosevelt didn’t want the supreme court to declare his new deal programs unconstitutional so he wanted to appoint justices that would side with him.

Question 21

What does WPA stand for and what did it do?

Answer 21

The WPA was Works Progress Administration: Built libraries, schools, hospitals, and roads as well as hiring artists and writers.

Question 22

What does CCC stand for and what did it do?

Answer 22

The CCC stands for Civilian Conservation Corps: Improved public lands by Social Security Act planting trees, clearing trails, fighting forest fires, etc.

Question 23

What does FDIC stand for and what did it do

Answer 23

The FDIC stands for Federal Deposit Insurance Corporation: Insured money deposited in banks.

Question 24

What did the Social Security Act do?

Answer 24

The Social Security Act did Provided insurance for unemployment and retirement.

Question 25

What ended the Great Depression?

Answer 25

World War II